Leases

9 Months Ended

Jun. 30, 2024

The majority of the Company's operating lease payments relate to its corporate headquarters in Seattle, Washington, which includes approximately 515,000 square feet of office space. The lease commenced in April 2019 and expires in 2033 with an option for renewal. The Company also leases additional office and lab space for product development and sales and support personnel in the United States and internationally. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of the Company's operating lease expenses for the three and nine months ended June 30, 2024 and 2023 were as follows (in thousands):


	Three months ended June 30,				Nine months ended June 30,
	2024		2023		2024		2023
Operating lease expense	$	10,101	$	11,801	$	30,594	$	36,498
Short-term lease expense	699		872		2,065		2,271
Variable lease expense	5,557		5,895		17,532		16,881
Total lease expense	$	16,357	$	18,568	$	50,191	$	55,650

Variable lease expense primarily consists of common area maintenance, real estate taxes and parking expenses.

Supplemental balance sheet information related to the Company's operating leases was as follows (in thousands, except lease term and discount rate):


	June 30, 2024			September 30, 2023
Operating lease right-of-use assets, net	$	185,253		$	195,471

Operating lease liabilities, current1	38,122			41,421
Operating lease liabilities, long-term	222,486			239,565
Total operating lease liabilities	$	260,608		$	280,986

Weighted average remaining lease term (in years)	8.1			8.6
Weighted average discount rate	2.93		%	2.77		%

(1)Current portion of operating lease liabilities is included in accrued liabilities on the Company's consolidated balance sheets.

As of June 30, 2024, the future operating lease payments for each of the next five years and thereafter is as follows (in thousands):


Fiscal Years Ending September 30:	Operating Lease Payments
2024 (remainder)	$	11,934
2025	42,961
2026	36,960
2027	33,658
2028	29,488
2029	26,750
Thereafter	112,351
Total lease payments	294,102
Less: imputed interest	(33,494)
Total lease liabilities	$	260,608

Operating lease liabilities above do not include sublease income. As of June 30, 2024, the Company expects to receive sublease income of approximately $7.5 million, which consists of $1.4 million to be received for the remainder of fiscal 2024 and $6.1 million to be received over the two fiscal years thereafter.

As of June 30, 2024, the Company had no significant operating leases that were executed but not yet commenced.